Commentary: Will China’s new data security initiative define global norms?

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China’s initiative could be a useful guide for countries in developing their own legal framework, but expect pushback from the United States, says ...

SINGAPORE: Data security and trade in data have become a major bone of contention between the United States and China in a conflict that started as a trade tussle but is rapidly sliding towards a new cold war.

Its 2017 Cybersecurity law raised concerns about the protection of personal data, as the law requires companies in China to hand over data if requested by the authorities. “Global data security rules that reflect the wishes of all countries and respect the interests of all parties should be reached on the basis of universal participation by all parties,” Wang said.

At the same time, there is growing demand, even in China, for protection of personal data and information.And there are growing concerns from governments how data, if in the wrong hands, could endanger national security. Even trickier is the movement of data across borders. This is essential for modern trade in services and innovation in manufacturing, which relies on information from users.Countries around the world have taken legal or regulatory steps to protect personal data.

At the same time, transferring data from one country to another could undermine protections granted to data subjects under national law. Therefore, data protection regimes would normally include rules on data transfer to other countries. Such rules can obviously have trade implications.These regulations could be used to protect one’s own industry, and could become a barrier against international trade and investment.

 

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